Rex Energy says encouraged by Marcellus tests
HOUSTON, June 16 |
HOUSTON, June 16 (Reuters) - Rex Energy Corp (REXX.O) on Monday said it was encouraged by initial production tests of a second well in the Marcellus shale in western Pennsylvania.
Rex also said its leasing efforts in the Marcellus showed positive results. As of June 16, Rex said its prospective acreage in the areas had grown to about 57,000 net acres.
"With the addition of approximately 10,000 acres since May 2008, we are getting closer to reaching our previously announced goal of expanding our Marcellus Shale prospective acreage to between 60,000 and 80,000 net acres by the end of 2008," Benjamin Hulburt, Rex Energy's chief executive officer, said.
A number of exploration and production companies are focusing efforts on developing "unconventional" fields in North America where oil and natural gas are locked in substances like shale.
The fields were once considered too costly to develop, but recent advances in technology and sky-high energy prices have changed the economics of drilling and heated up competition for acreage.
Shares of Rex rose nearly 3 percent, or 76 cents, to $28.10 on Nasdaq. (Reporting by Anna Driver in Houston; editing by Jim Marshall)
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